Employer of record in Malta: costs, rules and how to hire
Hire someone in Malta without opening your own company there.
An employer of record (EOR) can handle local employment while you manage the person’s work. Start by confirming the provider’s coverage and the arrangement available for your specific hire.
By Employ Borderless · We help you understand and compare EOR services.
How does an employer of record in Malta work?
Three parties, two contracts: the EOR employs the person under a local employment contract, your company signs a service agreement with the EOR and directs the day-to-day work. Which arrangement is legal and sensible in Malta is decided by the questions below.
Your company
Choose the person, agree their role and manage their daily work.
The employer of record
Handles the agreed employment, payroll and HR services through the employing entity named in your contract.
Your employee
Works with your team under a local employment contract with the EOR’s employing entity.
- Do you already have an entity in this country?
- How many people are you hiring, and for how long?
- Is the work genuinely independent, or is it a job?
- Who carries the employment risk if the arrangement is challenged?
What each route means in full
- Your own entity
- Choose it when: You already have a company here, or you are committing to a substantial local team for the long term.You become the legal employer. You arrange payroll, benefits, filings and employment support yourself, and you carry the setup and running cost.
- Employer of record
- Choose it when: You have a person to hire here, want them employed properly, and do not want to open a company for it.The provider is the legal employer through its own entity. You direct the work and pay one invoice covering salary, employer costs and the service fee.
- Independent contractor
- Choose it when: The work is genuinely independent: their own business, their own methods, their own clients.A contract for services, not employment. The label does not decide the status; how the person actually works does, and getting it wrong is reclassified after the fact.
Hiring in Malta: the short version
An employee in Malta on €2,000 a month costs an employer about €2,206 a month in salary and statutory contributions: 10 percent social security, €200, and a 0.3 percent maternity fund contribution, €6. There is no thirteenth-month salary, but every employee is entitled to the statutory bonus and weekly allowance, so add those once the provider confirms the amounts.
Two things shape the decision more than the rates. Many sectors have a Wage Regulation Order that sets higher minimum pay and overtime rates than the national standard, so the employee's sector matters. And social security is paid on weekly bands: at €559.31 a week and above, the contribution stops rising, which keeps the cost of senior hires predictable.
Your first hire in Malta in five decisions
- Entity or EOR. No fixed headcount decides it. An employer of record lets you employ without registering a Maltese company; your own entity makes sense once you run social security, tax withholding and sector rules for a stable team.
- Which sector rules apply. Check for a Wage Regulation Order covering the role before setting pay and overtime.
- Budget line. On €2,000 a month: €200 social security and €6 maternity fund, about €2,206 a month before the statutory bonuses.
- Notice reality. From one week up to twelve weeks after probation, rising with service.
- Contract type. Fixed-term contracts can run up to four years; ending one early after probation can cost half the remaining pay.
EOR, entity, or contractor in Malta?
Maltese employer cost is mostly social security, and it is capped. Both sides pay 10 percent of the basic weekly wage between €229.45 and €559.30 for employees born from 1962; above that the weekly contribution is fixed at €55.93 each. The employer adds 0.3 percent to the maternity fund, up to €1.68 a week.
What can a €2,000 monthly salary cost?
This full-year illustration assumes a whole-time employee born from 1962 with no sector Wage Regulation Order, on an unchanged salary.
| Budget item | Monthly | Annual illustration |
|---|---|---|
| Gross salary | €2,000 | €24,000 |
| Employer social security, 10% (weekly equivalent €461.54, inside the 10% band) | €200 | €2,400 |
| Employer maternity fund contribution, 0.3% | €6 | €72 |
| Subtotal before the items below | €2,206 | €26,472 |
| Statutory bonus and weekly allowance, company benefits, equipment and provider fee | Add the confirmed amounts | |
Employee deductions are separate: on the same salary the employee pays €200 a month in social security, plus income tax withheld through payroll.
Ask for a complete provider quote
- The Maltese entity that employs the hire, and whether it is registered with the tax authority as an employer.
- Whether a Wage Regulation Order applies to the role, and the minimum pay and overtime rate it sets.
- The amounts of the statutory bonus and weekly allowance for the current year, and when they are paid.
- The service fee, deposit, currency, exchange-rate method and invoice tax.
- The process and cost of ending employment, or of moving the hire to your own entity.
See how EOR pricing works before you compare quotes.
Source: DIER, national minimum wage, captured 12 September 2026.
How to hire employees in Malta
Hiring in Malta without your own company means a provider's Maltese entity becomes the legal employer: it signs the contract, registers the employee for social security, runs payroll and withholds tax, while you direct the work.
Steps for a first hire
- Check the sector. A Wage Regulation Order may set minimum pay and overtime above the national standard.
- Set pay at or above the minimum. The 2026 national minimum for whole-time employees is €229.44 a week.
- Choose the contract. Indefinite, or fixed-term for up to four years with probation pro rata to the length.
- Register contributions. Class 1 social security for the employee and the employer, plus the employer's maternity fund contribution.
- Run payroll with the statutory bonuses. Every employee is entitled to the statutory bonus and weekly allowance.
If the hire is not an EU national, work authorisation comes first; ask the provider how it handles the permit and the timeline.
Source: DIER, national minimum wage, captured 12 September 2026.
Source: DIER, fixed-term contracts, captured 12 September 2026.
What should you budget for hiring in Malta?
Your budget includes salary, employer contributions, agreed benefits and the EOR fee. Ask for a quote for the actual role and salary.
- Gross salary
- Employer contributions
- Benefits and other costs
- EOR service fee
- Gross salary: 100
- Employer social contributions: 10%
- Benefits and EOR fee: quoted per hire
The numbers behind this figure
| Cost | Amount |
|---|---|
| Gross salary | 100 |
| Employer social contributions | 10% |
| Benefits and EOR fee | Quoted per hire |
Source: ISSA, 2024
Published EOR base fees among providers covering Malta range from $99 to $699 per employee/month. These are provider base prices, not a quote for this hire or the total employment cost.
Separate employer contributions from employee deductions
| Item, 2026, employees born from 1962 | Employer | Employee |
|---|---|---|
| Social security, basic weekly wage €229.45 to €559.30 | 10% | 10% |
| Social security, basic weekly wage €559.31 and above | €55.93 a week | €55.93 a week |
| Maternity fund | 0.3%, up to €1.68 a week | None |
| Income tax | Withheld and remitted by the employer | By the employee's chargeable income |
For a monthly salary, the weekly figure is the weekly equivalent of the basic monthly pay.
Average salary in Malta by occupation
Gross monthly earnings of employees per ISCO-08 occupation group, in EUR, from the ILO's official labour statistics. These stored survey figures for Malta have reference year 2020. Use these survey earnings to benchmark an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (EUR) | Approx. USD |
|---|---|---|
| All occupations | 2,252 | $2,573 |
| Managers · ISCO 1 | 3,666 | $4,188 |
| Professionals · ISCO 2 | 2,943 | $3,361 |
| Technicians and associate professionals · ISCO 3 | 2,387 | $2,726 |
| Clerical support workers · ISCO 4 | 1,823 | $2,083 |
| Service and sales workers · ISCO 5 | 1,442 | $1,647 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 1,378 | $1,574 |
| Craft and related trades workers · ISCO 7 | 1,770 | $2,021 |
| Plant and machine operators and assemblers · ISCO 8 | 1,688 | $1,928 |
| Elementary occupations · ISCO 9 | 1,371 | $1,566 |
Source: ILOSTAT, the International Labour Organization's statistics database (average monthly earnings of employees, both sexes), reference year 2020.
How to hire through an EOR in Malta
- Step 1
Define your hire
Prepare the role, work location, salary, working hours and target start date.
- Step 2
Confirm the local hiring route
Ask the provider to confirm that its employing arrangement fits this role and location, including any restrictions.
- Step 3
Review the full quote and contract
Check the legal employer, total costs, benefits, responsibilities and exit terms before signing.
- Step 4
Complete onboarding
Coordinate employment documents, required checks, equipment and the payroll cut-off with the EOR.
- Step 5
Keep employment changes coordinated
Manage the work and tell the EOR about proposed pay, leave, contract or termination changes before they take effect.
What should the EOR arrange before your hire in Malta starts?
Confirm the employment terms, work eligibility, payroll and pension arrangements before the start date. Ask which local rules and agreements apply to your employee.
What catches employers out in Malta
Five points decide whether a Maltese payroll is right. Ask the provider to confirm each one for the actual role.
| Point | Why it changes the decision |
|---|---|
| Wage Regulation Orders | Sector orders can set minimum pay and overtime above the national standard. |
| Statutory bonuses | Every employee is entitled to the statutory bonus and weekly allowance on top of wages. |
| Leave counted in hours | A 40-hour week earns 192 hours a year, plus a day for each public holiday on a weekend or rest day. |
| Weekly contribution bands | Social security is set on the basic weekly wage, with a fixed weekly amount at the top of the band. |
| Early end of a fixed term | After probation, ending early can cost half of the remaining pay. |
Probation for indefinite contracts is not set out in the sources we captured, so treat it as a contract term and confirm the length with the provider.
Source: DIER, national minimum wage, captured 12 September 2026.
Source: DIER, vacation leave, captured 12 September 2026.
Source: DIER, fixed-term contracts, captured 12 September 2026.
What types of employment contracts exist in Malta?
Employment in Malta is indefinite or fixed-term. A fixed-term contract can last up to four years and, unless there are objective reasons, at least six months. Probation on a fixed-term contract is two months for every six months of contract, up to six months.
Ending a fixed-term contract early
During probation, either side gives one week of notice. After probation, an employee who leaves early pays half of the pay remaining until the contract ends; an employer who ends it early for redundancy pays the employee the same half.
What to put in writing
- Normal hours and the overtime rate, including any allowance for a fixed number of extra hours.
- Annual leave in hours, and how public holidays on a rest day are added to it.
- Notice periods at or above the statutory scale.
Source: DIER, fixed-term contracts, captured 12 September 2026.
Source: DIER, overtime, captured 12 September 2026.
What taxes and social contributions apply in Malta?
Class 1 social security is paid by both sides on the basic weekly wage, and the employer adds a small maternity fund contribution. Income tax is withheld through payroll.
Income tax bands
For 2025, single rates are 0 percent up to €12,000, 15 percent to €16,000, 25 percent to €60,000 and 35 percent above. Married and parent rates apply higher thresholds.
Source: Malta Tax and Customs Administration, Class 1 social security rates 2026, captured 12 September 2026.
Source: Malta Tax and Customs Administration, income tax rates 2025, captured 12 September 2026.
What pay and leave should your offer in Malta cover?
Agree pay, working patterns, paid leave and benefits as part of the offer. These affect both your hiring budget and how you plan the employee’s work.
- Paid annual leave: 24 days
- Public holidays: 14 days
- The rest of the year: 327 days
The numbers behind this figure
| Entitlement | Days a year |
|---|---|
| Paid annual leave (statutory minimum) | 24 days |
| Public holidays (national) | 14 days |
| Total statutory paid days off | 38 days |
Source: National government, 2026; National government, 2026. Statutory minimums. Eligibility, accrual and collective agreements can change what an individual employee receives.
How does payroll and compensation work in Malta?
The 2026 national minimum wage for whole-time employees is €229.44 a week. A sector Wage Regulation Order can set more, and every employee is also entitled to the statutory bonus and weekly allowance.
Hours and overtime
Where no sector order sets the rate, overtime is paid at one and a half times the normal rate for work beyond 40 hours a week, averaged over four weeks or the shift cycle. Average weekly hours are capped at 48 unless the employee agrees in writing to more.
No statutory thirteenth month
Malta has no thirteenth-month salary as such. The statutory bonus and weekly allowance are the extra payments to budget for.
Source: DIER, national minimum wage, captured 12 September 2026.
Source: DIER, overtime, captured 12 September 2026.
What benefits and leave are employees entitled to in Malta?
| Entitlement | Statutory minimum |
|---|---|
| Annual leave | 192 hours on a 40-hour week, four weeks and 32 hours, plus a day for each public holiday on a weekend or rest day |
| Public holidays | 14 paid national and public holidays |
| Maternity leave | 18 weeks, the first 14 paid by the employer |
| Paternity leave | 10 working days on full wages, no service requirement |
| Parental leave | 4 months per parent until the child is 8, with 2 months paid at the sickness benefit rate |
Six weeks of maternity leave must be taken immediately after the birth. Parental leave needs 12 months of continuous service unless a shorter period is agreed.
Source: DIER, vacation leave, captured 12 September 2026.
Source: DIER, maternity leave, captured 12 September 2026.
Source: DIER, paternity leave, captured 12 September 2026.
Source: DIER, parental leave, captured 12 September 2026.
What happens if you need to end employment in Malta?
Discuss the proposed change with the EOR before giving notice or promising an exit payment. Ask it to confirm the procedure, timing and costs for the employee’s circumstances.
The numbers behind this figure
| Obligation | Weeks of salary |
|---|---|
| Statutory notice | 7 weeks |
| Statutory severance | 0 weeks |
| Total statutory exit cost | 7 weeks |
Malta sits at number 102 of 191 countries for statutory exit cost in our Termination Cost Index.
What are the termination and compliance rules in Malta?
Notice in Malta depends on continuous service and applies once probation is over.
| Continuous service | Notice |
|---|---|
| More than 1 month, up to 6 months | 1 week |
| More than 6 months, up to 2 years | 2 weeks |
| More than 2 years, up to 4 years | 4 weeks |
| More than 4 years, up to 7 years | 8 weeks |
| More than 7 years | 1 more week per year, up to 12 weeks |
During probation, one week of notice applies once service passes one month. Longer notice can be agreed for technical, administrative, executive and managerial posts.
For a fixed-term contract ended early for redundancy after probation, the employer pays the employee half of the pay remaining until the contract ends.
Source: DIER, notice period, captured 12 September 2026.
Source: DIER, fixed-term contracts, captured 12 September 2026.
These are stored source rules, not a case-specific termination calculation. Confirm the applicable procedure and current requirements before acting.
Choose an EOR for your hire in Malta
Compare the employing entity, itemised costs, local support, payroll deadlines and what happens if you change or end the arrangement.
Questions about hiring in Malta
What does an employer of record do in Malta?
An employer of record employs your hire through its Maltese entity, signs the contract, registers the employee for social security, runs payroll and withholds tax, while you direct the work.
Can I hire in Malta without setting up my own company?
Yes, through a provider whose Maltese entity employs the person. Confirm the employing entity and whether a sector Wage Regulation Order applies to the role.
What is the minimum wage in Malta?
For 2026, €229.44 a week for whole-time employees, before the statutory bonus and weekly allowance. A sector Wage Regulation Order can set more.
How much are employer contributions in Malta?
For employees born from 1962, 10 percent of the basic weekly wage between €229.45 and €559.30, or a fixed €55.93 a week above that, plus a 0.3 percent maternity fund contribution. On €2,000 a month that is about €206.
Is there a thirteenth-month salary in Malta?
No, but every employee is entitled to the statutory bonus and weekly allowance, so budget for those on top of salary.
How much notice do you give to end employment in Malta?
After probation, from one week for up to six months of service to eight weeks for four to seven years, then one more week per year up to twelve weeks.
How much annual leave do employees get in Malta?
At least 192 hours a year on a 40-hour week, which is four weeks and 32 hours, plus 14 paid public and national holidays.
Is an EOR the same as a PEO?
No. With an employer of record the provider’s Maltese entity is the legal employer; with a PEO or payroll service your business remains the employer and needs its own registrations. Compare EOR and PEO.
What changed in Malta
Checked against official sources on .
No rule changes recorded since we began logging them.
Check the facts behind this guide
Each reviewed fact links to its source and shows its validation date and effective period. Monthly review does not mean that every rule changes monthly. Statistical benchmarks retain their original data periods.
View sourced facts and review dates
| Fact | Value | Source | Effective / data period | Last validated |
|---|---|---|---|---|
| €229.44 a week for whole-time employees in 2026 | For 2026, the national minimum wage for whole-time employees is €229.44 a week. A sector Wage Regulation Order can set a higher minimum, and every employee is also entitled to the statutory bonus and weekly allowance on top of wages. | Department for Industrial and Employment Relations (DIER): national minimum wage | Malta: private-sector employment, subject to the applicable Wage Regulation Order, the contract and any collective agreement | |
| 192 hours of paid leave on a 40-hour week | A whole-time employee on a 40-hour week gets at least 192 hours of paid annual leave, four weeks and 32 hours, plus an extra day for each public holiday that falls on a weekend or rest day. Leave is pro rata for part-time staff and for less than a year of service. | Department for Industrial and Employment Relations (DIER): vacation leave | ||
| Fourteen paid public and national holidays | Employees get 14 paid national and public holidays a year. | Department for Industrial and Employment Relations (DIER): national and public holidays | ||
| Overtime above 40 hours, a 48-hour average cap | Where no sector Wage Regulation Order sets the rate, overtime is paid at one and a half times the normal rate for work beyond 40 hours a week, averaged over four weeks or the shift cycle. An employee cannot be asked to work more than an average of 48 hours a week without consenting in writing. | Department for Industrial and Employment Relations (DIER): overtime | ||
| Eighteen weeks of maternity leave, fourteen paid by the employer | Maternity leave is 18 uninterrupted weeks. The employer pays the first 14 weeks; the remaining weeks may be paid under the Social Security Act. Six weeks must be taken right after the birth. | Department for Industrial and Employment Relations (DIER): maternity leave | ||
| Ten working days of paid paternity leave | The second parent gets 10 working days of leave on full wages immediately after a birth or adoption, with no minimum service requirement. | Department for Industrial and Employment Relations (DIER): paternity leave | ||
| Four months of parental leave, two of them paid | Each parent can take four months of parental leave until the child turns eight. For births and adoptions from 2 August 2022, two months (eight weeks) are paid at the sickness benefit rate. The employee needs 12 months of continuous service unless a shorter period is agreed. | Department for Industrial and Employment Relations (DIER): parental leave | ||
| Notice rises from one to twelve weeks with service | After probation, notice depends on continuous service: one week for one to six months, two weeks up to two years, four weeks up to four years, eight weeks up to seven years, then one more week per year up to twelve weeks. Longer notice can be agreed for technical, administrative, executive and managerial roles. | Department for Industrial and Employment Relations (DIER): notice period | ||
| Fixed-term contracts run up to four years | A fixed-term contract can last up to four years and, unless there are objective reasons, at least six months. Probation on a fixed-term contract is two months for every six months of contract, up to six months. | Department for Industrial and Employment Relations (DIER): fixed-term contracts | ||
| Social security: 10 percent each, capped weekly | In 2026, for employees born from 1962, the employer and the employee each pay 10 percent of the basic weekly wage between €229.45 and €559.30. Above €559.31 a week each pays a fixed €55.93. The employer also pays a maternity fund contribution of 0.3 percent, up to €1.68 a week. | Malta Tax and Customs Administration: Class 1 social security contribution rates, 2026 | Malta: private-sector employment, subject to the applicable Wage Regulation Order, the contract and any collective agreement | |
| Income tax from 0 to 35 percent | For 2025, single rates are 0 percent up to €12,000, 15 percent to €16,000, 25 percent to €60,000 and 35 percent above. Married and parent rates have higher thresholds. The employer withholds tax through payroll. | Malta Tax and Customs Administration: income tax rates for individuals, 2025 |